A TOWN council has been let off the hook by the taxman following a £340,000 administrative blunder.

Seaford Town Council risked losing the figure after failing to claim back VAT on building work at Seaford Head Golf Course.

The failure to claim the money back was classed as an “administrative error” and the previous town clerk was dismissed as a result.

The council asked HMRC to reimburse the cash, suggesting Seaford residents risked another council tax hike if an agreement could not be made.

However, after months of negotiations, Inland Revenue has now agreed to let the council off and claim back the VAT. Council tax in the town will now be frozen as a result.

A council statement read: “Had the Inland Revenue not accepted the council’s retrospective submissions, the council would have been required to pay the full VAT of £340,000 incurred in construction costs and not reclaim it.

“Councillors have congratulated the existing officers on rectifying this mistake and were able to reduce the need for contingencies within the budget.

“Whilst the town council has a number of financial uncertainties at present, we are addressing these one by one and so far always to the benefit to the council and Seaford residents."

The welcome news comes just under a year after MP for Lewes Norman Baker described the council as “out of control”.

But Seaford Councillor Paul Franklin said things were now looking up at the authority.

He said: “It’s brilliant news. I thought we were going to get caught for £30,000 or something but the revenue recognised it was a genuine mistake.

“The clerk and staff put our case forward and worked really hard, so they should take the credit.

“As a direct result of that we were able to freeze the council tax, which is great news for everyone in the town.

“It made a drastic difference to the budget and it’s just the kind of start to the New Year we wanted. We’ll push on from here.”